IMF seeks stronger transparency measures for anti-graft watchdog

ISLAMABAD: Pakistan has been asked by the International Monetary Fund (IMF) to improve the autonomy and transparency of the National Accountability Bureau (NAB) and provide regular updates to the lender on anti-corruption outcomes, according to the IMF’s recent staff report.

The authorities would submit amendments to the NAB Ordinance to parliament by the end of January 2027 to improve the process for appointing the NAB chairman and to make public the bureau’s investigation and prosecution rules as well as annual enforcement statistics.

Before those legal changes are introduced, the government is also required under an earlier structural benchmark to reach an understanding with the IMF on a methodology for a corruption risk assessment that will feed into an anti-corruption action plan to be led by NAB.

The IMF report said the government would publish corruption vulnerabilities in the 10 departments identified as carrying the highest risks, based on an institutional-level assessment. The methodology would be approved by the Anti-Corruption and Anti-Money Laundering/Counter-Financing Terrorism (AML/CFT) Committee, which is chaired by the law ministry.

Reform plan and reporting commitments

The IMF has placed greater emphasis on the effectiveness of anti-corruption institutions after publishing its governance and corruption diagnostic assessment last year.

The government had recently revised the Civil Servant (Conduct) Rules to ensure the online publication of asset declarations of senior federal civil servants by the end of December 2026.

Pakistan published the prime minister’s Economic Governance Reform (EGR) Plan in December last year on the basis of key recommendations in the governance and corruption diagnostic assessment. The plan sets out 15 reform actions along with key performance indicators, timelines and monitoring arrangements.

The authorities have also committed to developing and publishing outcome-based indicators in consultation with relevant stakeholders to improve transparency. In addition, progress reports are to be prepared every six months, with publication on the finance ministry’s website. The process is currently under consultation.

Provincial anti-corruption bodies

Under directions from the Anti-Corruption and AML/CFT Committee, NAB has been assigned to lead the preparation of an action plan by the end of October 2026 to address corruption vulnerabilities in the 10 government departments assessed as having the highest risks.

To support that process, the committee is to develop and publish by the end of June 2026, in consultation and agreement with IMF staff, a methodology for assessing and prioritising corruption risks at the agency level. The same framework will also set out protocols for carrying out the assessments, reporting and reviewing findings, and defining measures to reduce corruption risks in the identified agencies.

The government has further committed to strengthening the capacity of provincial anti-corruption establishments to conduct financial investigations related to corruption at the provincial level.

In line with the Anti-Money Laundering Act and the National Fiscal Pact, the relevant federal notification process started by the Financial Monitoring Unit will be completed by the end of December 2026 to designate provincial bodies to investigate money laundering.

To facilitate the online publication of asset declarations of senior federal civil servants by the end of 2026, the Establishment Division is also to revise the declaration form by the end of May 2026 to define limits on confidential personal information. In coordination with the Federal Board of Revenue, it is also to develop a framework for risk-based verifications by June 2027.